Activity rate for the fabrication activity cost pool

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Reference no: EM13341546

Daniele Corporation uses an activity-based costing system with the following three activity cost pools:

Activity Cost Pool

Total Activity

Fabrication

50,000 machine-hours

Order processing

500 orders

Other

not applicable

The Other activity cost pool is used to accumulate costs of idle capacity and organization-sustaining costs.

The company has provided the following data concerning its costs:

Cost Data

Wages and salaries

$280,000

Depreciation

$200,000

Occupancy

$140,000

Total

$620,000

The distribution of resource consumption across activity cost pools is given below:

 

Activity Cost Pools

 

Fabrication

Order Processing

Other

Total

Wages and salaries

60%

30%

10%

100%

Depreciation

20%

35%

45%

100%

Occupancy

10%

50%

40%

100%

The activity rate for the Fabrication activity cost pool is closest to _______ per machine hour.

Reference no: EM13341546

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